So CF, what are your thoughts on the USAirways thing? Good idea? Is there any kind of long-term fallout when an airline defers deliveries?

I think it’s a smart move. There’s no reason to spend that cash if they can keep the old aircraft for longer. It’s just a good cash management strategy, and cash management is pretty important right now.

Crank,
So, do you really think that increasing the PFC’s by $3 at LAX is going to cause the passengers to leave in droves?
Also, did you mean to say that the city council has no legal right to raise the max PFC? If not, then who does?

The point is that raising PFCs are ultimately the same as raising rates for the airlines. The customer has to pay in the end. So a PFC is not like finding magic money. Remember, this isn’t just like having an extra $3 on a ticket. That was the same rationale used when they first put this thing out there. It’s just a continued increase in fees that are out of the control of the airline. And remember, if it’s at a connecting airport, you will get charge twice on a roundtrip. If airlines could just raise all fares $3 across the board, then they’d do it.

Right now, the feds have capped the PFC at $4.50, so it takes action on their part to be able to increase it above that point. That’s what’s being debated in Congress with the FAA reauthorization.